Category Archives: Working Papers 2002

Abstract: Auctions are playing an increasingly prominent role in the planning and operation of energy markets. Comparing the New Electricity Trading Arrangements to the former electricity Pool in England and Wales requires some analysis of the relative merits of uniform versus discriminatory pricing rules, and use of the gas network in Britain and electricity interconnectors around Europe is allocated on the basis of auction results. In this paper we discuss the changes in the trading arrangements in the electricity industry in England and Wales as well as some of the results to date. We also look at the wider issue of using auctions to replace regulation by market solutions for managing the natural monopolies in energy markets.

David Newbery Regulatory Challenges to European Electricity Liberalistation EP 12 | Non-Technical Summary | PDF Abstract: The European Commission proposed to reform the Electricity and Gas Directives to improve access to transmission, increase cross-border capacity, and fully open the electricity and gas markets. The California electricity crisis has weakened support for liberalisation, removed the commitment… Continue Reading

Gert Brunekreeft Regulatory Threat in Vertically Related Markets: The Case of German Electricity EP 10 | Non-Technical Summary | PDF Abstract: This paper applies the concept of regulatory threat to analyse the electricity supply industry in Germany, where in contrast to other European member states, there is no ex-ante regulation of network access charges. Instead,… Continue Reading

Stephen Littlechild Competition in Retail Electricity Supply EP 09 | Non-Technical Summary | PDF Abstract: This paper presents an analysis and defence of competition in retail electricity supply. It includes some account of its development in the UK over the last dozen years, to the point where all retail price controls have now been removed.… Continue Reading

Paul Joskow, Edward Kahn A quantitative analysis of pricing behaviour in California’s wholesale electricity market during summer 2000: the final word EP 02 | Non-Technical Summary | PDF Abstract: During the Summer of 2000, wholesale electricity prices in California were nearly 500% higher than they were during the same months in 1998 or 1999. This… Continue Reading

David Newbery Issues and options for restructuring electricity supply industries EP01 | Non-Technical Summary | PDF Abstract: The electricity supply industry is highly capital-intensive, whose success depends critically upon the management of its investment. In most developing countries investment is poorly managed, poorly maintained, and often inadequate. Inadequate regulation or political control lead to low… Continue Reading